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Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices-one in Toronto and one

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Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices-one in Toronto and one in Vancouver. The firm classifies the direct costs of consulting jobs as variable costs. A segmented contribution format income statement for the company's most recent year is given below: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Operating income Office Total Company Toronto Vancouver $911,000 100.00 $161,000 100 $750,000 100% 452.750 49.70 40,250 25 412,500 55 458,250 50.30 120, 750 75 337,500 45 172, 110 18.89 8211051 90,000 12 286,140 31.41 $ 38,640 241 $247,500 330 180.000 19.26 $106,140 11.65 Required: 1. By how much would the company's operating Income increase if Vancouver Increased its sales by $84,000 per year? Assume no change in cost behaviour patterns. Increase in operating incomo 2-a. Refer to the original data. Assume that sales in Toronto increase by $100,000 next year and that sales in Vancouver remain unchanged. Assume no change in fixed costs, Prepare a new segmented income statement for the company. (Round your percentage answers to 2 decimal places.) Total Company Amount Toronto Amount Segments Vancouver % Amount

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